Yen Trading More Perilous Than India's Rupee as Volatility Flips
- Price swings for G-7 currencies higher than emerging markets
- End of dollar rally, yen strength, Brexit confound forecasts
Japanese 100 yen coins are arranged for a photograph in Kawasaki, Kanagawa Prefecture, Japan, on Wednesday, Feb. 24, 2016. The yen headed for its first weekly decline since January, paring its biggest monthly advance since the global financial crisis, amid improving risk sentiment as Group-of-20 policy makers meet in Shanghai.
Photographer: Akio Kon/BloombergWhen traders are more worried about the yen than the Indian rupee, it’s a sign of just how crazy the currency market has become.
Implied volatility on developed-nation currencies exceeds that of emerging markets for the first time in a year. Growing doubt about central banks’ ability to induce growth and inflation in Japan and Europe and optimism that emerging nations will avoid widespread economic slowdown have upended patterns in foreign exchange.